A leftward shift of the aggregate demand (AD)curve could result from a rise in
A)desired exports.
B)government purchases.
C)government transfer payments to households.
D)the net tax rate.
E)desired investment.

Question

Quizplus · Accepted Answer

An increase in the net tax rate would decrease disposable income which would lead to a decrease in consumption, decreasing AD and causing a leftward shift in the AD curve.

A Leftward Shift of the Aggregate Demand (AD)curve Could Result